CONTRACT MANUFACTURING
MORE THAN AN OUTSOURCING SOLUTION
Ben Beattie, Director of Forbeats
Ben Beattie, Director of Forbeats, explains how the right contract manufacturing partner can help chemical and pharmaceutical companies achieve quality, compliance, and growth
mid rising inflation, fluctuating raw material costs, and ongoing supply chain disruptions, the role of contract manufacturers has never been more relevant. The chemical and pharmaceutical sectors are characterised by strict regulatory oversight, demanding production specifications, and a need for specialised equipment. Few businesses can afford to invest continually in the infrastructure, technology, and expertise required to keep pace, especially when demand can fluctuate dramatically.
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Seizing market opportunities Across industries, companies are increasingly outsourcing their production to focus their resources on innovation and market expansion. Contract manufacturers, however, offer more than just an outsourcing solution – they provide access to specialised facilities, skilled and experienced personnel, and extensive regional and global networks, essentially making them a strategic business partner. In fact, they can be key enablers for seizing market opportunities and growth. By offering operational agility, services and expertise that often cannot be matched in- house, they enable faster, more efficient production while maintaining rigorous quality and compliance standards. This flexibility is crucial in helping companies achieve shorter time-to-market despite rising costs, ongoing supply chain challenges, and ever-more complex regulatory requirements. The reasons for partnering with a contract manufacturer can be varied, ranging from accessing diverse supplier networks and scaling production quickly, to navigating
regulatory complexity and reducing operational costs. However, contract manufacturing is becoming increasingly sophisticated, offering new ways to innovate and respond to market demands. Artificial intelligence (AI), for example, is enabling predictive analytics, real-time monitoring, and dynamic resource allocation, all of which is critical in complex, regulated industries. For chemical and pharmaceutical companies, this means better demand forecasting, minimised downtime, and optimised batching.
As sustainability becomes a central concern for both regulators and consumers, greener manufacturing practices and techniques are also on the rise. Many contract manufacturers are investing in energy-efficient equipment, waste-reduction initiatives, renewable energy sources, and environmentally friendly raw materials. For chemical and pharmaceutical companies, which often face scrutiny over environmental impacts, working with a partner that prioritises sustainability not only helps meet regulatory and corporate social responsibility (CSR) goals, but can also improve brand reputation.
Customised solutions
Finally, contract manufacturers are helping drive the growing private label trend by offering bespoke formulations, tailored packaging, and even branding support to help clients bring unique products to market quickly. This allows chemical and pharmaceutical companies to offer customised solutions to niche or specialised markets without added overheads or risk. Choosing the wrong contract
6 JULY/AUGUST 2025 | PROCESS & CONTROL
manufacturing partner can expose companies to a range of risks, from poor product quality and production delays to regulatory non-compliance or intellectual property theft. In the chemical and pharmaceutical industries, where errors can have serious legal, financial, and reputational consequences, the stakes are particularly high.
Choosing a contract manufacturer As such, there are important aspects to consider when choosing a contract manufacturer partner. First, robust quality assurance systems should be non-negotiable. Signs of a reliable and reputable partner will include regular audits, well-documented procedures, strong internal systems and checks, and meeting all the required industry standards.
Second, it is vital to choose a partner that can navigate complex regulatory environments and keep up with evolving requirements, especially if you are looking to expand to international markets. Look for a company with the appropriate certifications and experience in your target markets. Third, consider your potential partner’s capabilities, equipment, production capacity and expertise, and ensure that this is underpinned by clear contractual agreements and service-level expectations. Also, evaluate their ability to communicate openly and honestly. You want a partner who will provide regular updates, be transparent about challenges, and work with you to find solutions when issues arise.
Finally, ensure your potential partner offers strong intellectual property (IP) protection and conduct due diligence on the company’s reputation for confidentiality and ethical conduct – you want to make sure your formulas, designs, and proprietary processes are safe. Look for client testimonials, case studies, and references to assess their performance and reputation.
Contract manufacturing has moved beyond being merely an outsourcing solution to address cost or capacity challenges. For chemical and pharmaceutical companies, it can drive innovation and expansion while ensuring operational efficiency and sustainability.
Forbeats
forbeats.co.uk
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